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Vango, Inc. sells part number 86z to auto parts stores around the world. Informa

ID: 2503882 • Letter: V

Question

Vango, Inc. sells part number 86z to auto parts stores around the world. Information about part number 86Z is contained in the table below. Vango uses a FIFO periodic inventory system.

2000         *           8.0    = 16,000

3,000        *          8.2    = 24,600

5,000         *           8.6    = 43,000

+___________________________

10,000                            = 83600

A.            Cost of goods sold is $34,440 and ending inventory is $49,200

B.            Cost of goods sold is $51,200 and ending inventory is $32,400

C.            Cost of goods sold is $50,160 and ending inventory is $33,440

D.            Cost of goods sold is $49,200 and ending inventory is $34,400

Explanation / Answer

TOTAL UNITS PURCHASED = 10000 UNITS

UNITS LEFT UNSOLD i.e. ENDING INVENTORY = 4000 UNITS

THEREFORE, UNITS SOLD = 10000